Internet Marketing Acronyms

When you start with internet marketing it can be frustrating to read or hear so many new acronyms. But it is important to understand what they mean. The list below should help you learn them.

ASP – Application Service Provider

A business that provides computer-based services to customers over a network. They host and manage the application/service. Software offered using an ASP model is also sometimes called On-demand software. (For instance: an internet billing system).

CPC/PPC – Cost Per Click – Pay Per Click

A common form of internet advertising. The CPC is the amount an advertiser pays each time a user clicks on his/her ad. (Advertising networks: AdWords/AdSense, Adbrite, etc.) You get paid for every valid click on an ad that is published on your site.

CPS – Cost Per Sale

Price for each sale made.

CTR – Click Through Ratio

The number of times an ad or link is shown compared to the number of times it was clicked on.

CPM – Cost Per Mille

What it costs to show an ad to one thousand viewers. It is used in marketing as a benchmark to calculate the relative cost of an advertising campaign. (Also called CPT: Cost Per Thousand.)

CPA – Cost Per Action

The optimal form of buying online advertising from the advertiser’s point of view. They only pay for an advert when an action has occurred. (What action must be performed is determined by the advertiser.)

IM – Internet Marketing

The use of the Internet to advertise, sell products and services.

PPCSE – Pay Per Click Search Engine

A search engine that charges advertisers a fee for each click the advertiser receives.

PPS – Pay Per Sale

A type of affiliate marketing in which the advertiser is paid a set percentage of the profit made through a sale that was generated by their affiliate link.